Fox Shifts Production to Taiwan
SCOTTS VALLEY, USA – To shorten lead-times for its OEM customers, US fork manufacturer Fox Factory Holding want to shift the production of its bicycle components to Taiwan from its assembly plant in Watsonville, California.
“In 2013 we will complete 700,000 assemblies,” said Larry Enterline, the chief executive at Fox. “Next year, the company intends to transition full-fork production to the facility in Taichung. With most of the customers for our premium products based in Taiwan, moving production will allow us to cut lead times and improve our supply chain.”
“Getting closer to our customers”
Around 80% of the Fox bike business comes from original equipment manufacturers mainly based in Taiwan. “If this were purely a labor-arbitrage move, we would have invested somewhere else. So, while this will help us to improve margins, it’s more about getting closer to our customers,” said Fox CEO Larry Enterline.
A background report on Fox Factory Holding will be published in the November issue of Bike Europe.